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AAR CORP (AIR) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock

105.47 USD
+1.21 (+1.16%)
Last: 1/27/2026, 8:04:00 PM
106.97 USD
+1.5 (+1.42%)
After Hours: 1/27/2026, 8:04:00 PM
Fundamental Rating

5

Overall AIR gets a fundamental rating of 5 out of 10. We evaluated AIR against 73 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of AIR get a neutral evaluation. Nothing too spectacular is happening here. AIR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year AIR was profitable.
  • AIR had a positive operating cash flow in the past year.
  • In the past 5 years AIR has always been profitable.
  • Each year in the past 5 years AIR had a positive operating cash flow.
AIR Yearly Net Income VS EBIT VS OCF VS FCFAIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • With a Return On Assets value of 2.90%, AIR perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
  • With a Return On Equity value of 6.03%, AIR perfoms like the industry average, outperforming 56.16% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.32%, AIR is doing good in the industry, outperforming 71.23% of the companies in the same industry.
  • AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.56%.
  • The last Return On Invested Capital (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROIC 8.32%
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
AIR Yearly ROA, ROE, ROICAIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • AIR has a Profit Margin (3.17%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of AIR has grown nicely.
  • AIR's Operating Margin of 9.40% is in line compared to the rest of the industry. AIR outperforms 58.90% of its industry peers.
  • In the last couple of years the Operating Margin of AIR has grown nicely.
  • Looking at the Gross Margin, with a value of 19.29%, AIR is doing worse than 64.38% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AIR has grown nicely.
Industry RankSector Rank
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
AIR Yearly Profit, Operating, Gross MarginsAIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
  • Compared to 1 year ago, AIR has more shares outstanding
  • The number of shares outstanding for AIR has been increased compared to 5 years ago.
  • AIR has a better debt/assets ratio than last year.
AIR Yearly Shares OutstandingAIR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
AIR Yearly Total Debt VS Total AssetsAIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • AIR has an Altman-Z score of 3.52. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of AIR (3.52) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.61 indicates that AIR is somewhat dependend on debt financing.
  • AIR has a worse Debt to Equity ratio (0.61) than 65.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 3.52
ROIC/WACC0.82
WACC10.19%
AIR Yearly LT Debt VS Equity VS FCFAIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.84, AIR is in line with its industry, outperforming 56.16% of the companies in the same industry.
  • AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.31, AIR is in line with its industry, outperforming 43.84% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.31
AIR Yearly Current Assets VS Current LiabilitesAIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

5

3. Growth

3.1 Past

  • AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.72%, which is quite impressive.
  • Measured over the past years, AIR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.75% on average per year.
  • Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 15.40% in the last year.
  • AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%

3.2 Future

  • AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
  • Based on estimates for the next years, AIR will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y22.08%
EPS Next 2Y19.47%
EPS Next 3Y18.19%
EPS Next 5YN/A
Revenue Next Year18.09%
Revenue Next 2Y14.21%
Revenue Next 3Y11.37%
Revenue Next 5Y1.07%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AIR Yearly Revenue VS EstimatesAIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
AIR Yearly EPS VS EstimatesAIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.92, AIR is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 90.41% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (28.87), we can say AIR is valued inline with the index average.
  • The Price/Forward Earnings ratio is 18.95, which indicates a rather expensive current valuation of AIR.
  • 95.89% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (25.96), we can say AIR is valued slightly cheaper.
Industry RankSector Rank
PE 23.92
Fwd PE 18.95
AIR Price Earnings VS Forward Price EarningsAIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 90.41% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.88
AIR Per share dataAIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • AIR has a very decent profitability rating, which may justify a higher PE ratio.
  • AIR's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)1.88
EPS Next 2Y19.47%
EPS Next 3Y18.19%

0

5. Dividend

5.1 Amount

  • No dividends for AIR!.
Industry RankSector Rank
Dividend Yield 0%

AAR CORP / AIR FAQ

What is the ChartMill fundamental rating of AAR CORP (AIR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AIR.


What is the valuation status of AAR CORP (AIR) stock?

ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.


Can you provide the profitability details for AAR CORP?

AAR CORP (AIR) has a profitability rating of 6 / 10.


How financially healthy is AAR CORP?

The financial health rating of AAR CORP (AIR) is 4 / 10.


What is the expected EPS growth for AAR CORP (AIR) stock?

The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 22.08% in the next year.